In Portugal, establishing a company is very simple. You only need to register for taxation and obtain an authorization card if you are a European resident. Nevertheless, individuals from across the Union must first submit a visa application before opening an enterprise or even applying for a position. Additionally, if you don’t yet speak Portuguese, contacting a consultant to handle the regulatory needs would be worthwhile.
Continue reading to find out all you want to understand about launching an enterprise in Portugal, which will help you get adjusted.
Private Limited Company
You will require a minimum of two associates who will split quotes to start this business. The down payment is $5,000. Each companion’s accountability in this situation is restricted to the contributed funds. As a result, in the event of bankruptcy, only the resources of your business may be subject to lenders.
Getting a business permit
You need a license or residency card to start a business in Portugal. The D2 card is the most popular choice for business people. But, starting a business does not guarantee you a residency permit. You must also demonstrate the following:
- An effective corporate strategy;
- Proof of your expertise in the field;
- Financial viability; and
- Relevance of your proposal to the nation.
You can also file for an Entrepreneur Card as an option. You will be a participant in a start-up ecosystem with this permit. It’s appropriate for people just starting as a businessman who requires some time to get used to the marketplace.
Registration of PLC
In Portugal, there are two options to incorporate your enterprise: electronically or in hand. Private limited firms can accomplish this through online tools. The owners require citizenship to do this. You must submit the registration request and all essential data online or personally to the local registrar.
Registration Rules
The first step in starting a business in Portugal is to submit a NIF application. You can then move on to the following next stages after that’s resolved:
Register a name
The approval of business names is handled by the Federal Registration of Organizations. Each firm is required to select an original name that is distinct from all other Portuguese companies. Business setup specialists advise requesting authorization for three potential business names before presenting just one. The projected commercial operations of a firm must be indicated in the entity title. Before registering, you can check the list of free domains.
Corporate names may be written using the Latin script in any language. The firm name must finish with either the phrases “Sociedad por Quotas” or “LDA.”
Explain business operations
The company is capable of a wide range of commercial endeavors. Even though the Agreement of Incorporation may specify particular business operations, it is customary to give a more general overview of the sorts of economic activities.
Permissions and licenses
You must request the Secretariat for Commercial Affairs to conduct trade in Portugal. This might be presented to the Balco do Empreendedor. Check the list of licenses in advance because each product and service has various criteria.
Share Capital
Before incorporation, 5,000 Euros in fully paid-up share capital is the minimal need. It is necessary to establish a backup capital with 5% of annual revenues added to it to cover potential liabilities to 3rd parties.
Registered Office
A listed office location is required for every company to obtain crucial notifications and tax filings. The institution’s official headquarters is where all financial documents and files are kept. The corporate headquarters, which is closed and inaccessible to the public, must maintain a record of executives.
Director
The company just requires one director. To more effectively govern and oversee the Lda, the only proprietor may switch to become the single governor. Governors may be both natural beings and commercial entities. Directors may be national or international people.
Shareholder
A single investor is all that is needed to create a firm. A non-resident from any nation, living anywhere, maybe the proprietor. The number of stockholders is not restricted.
According to the company’s articles of organization, quotas are used in place of shares by the company. The only way to transfer quotas is by completing a public deed.
Accounting
The Treasury Department must receive yearly financial reports, which can be submitted online. The closing date is the last day of June of the preceding fiscal calendar. Unless the organization is deemed a “big” enterprise, inspections are not necessary.
All necessary paperwork needs to be created, submitted to the Registrar, and approved, which could take up to two weeks.
